The Potassium Metabisulphite market is projected to register a CAGR of more than 4% during the forecast period (2021-2026).
The market growth is hampered by the COVID-19 pandemic, as lockdowns, social distances, and trade sanctions have triggered massive disruptions to global supply chain networks. Due to lockdowns in various countries, most of the industries or factories were temporarily shut down and have impacted the growth of the food and beverage segment. On the other hand, this pandemic has provided new possibilities for pharmaceuticals and textile industries in areas such as rising demand for chemical modifiers/oxidants and PPE suits amongst others.
- Over the medium term, growing demand in the food and beverage industry and increasing usage in the textiles industry are likely to drive the market.
- On the flip side, the presence of substitutes such as sodium and ammonium metabisulfite are likely to hinder the growth of market.
- Europe region dominated the market across the globe with the largest consumption from countries such as Germany and United Kingdom.
Key Market Trends
Increasing Demand from Food and Beverage Segment
- Potassium metabisulfite also called potassium pyrosulfite, is a white crystalline powder having a pungent odor. It has a monoclinic crystal structure due to which gives potassium sulfite and sulfur dioxide on decomposition.
- The growing use of potassium metabisulfite as an additive in wine owing to its antioxidant properties is stimulating the demand for potassium metabisulfite. During the process of winemaking, potassium metabisulfite reacts to form sulfur dioxide which helps to protect the color and delicate flavors of wine.
- Potassium metabisulfite is used in the brewing industry, as a stabilizer, to prevent the growth of bacteria and fungi. It also added to tap water during the process of disinfection for neutralizing monochloramine.
- Additionally, potassium metabisulfite is also used as a food preservative in lemon juice and pickles.
- The significant growth in the food and beverage industry is propelling the dmeand for potassium metabisulfite across the world.
- According to Statista Market Forecast, the revenue from the food & beverage segment is estimated at USD 276,904 million in 2021. Revenue is expected to show a CAGR of over 8% during ther period 2021-2025 and is expected to reach USD 379,650 million by 2025.
- Owing to all the above-mentioned factors for potassium metabisulfite, its market is expected to grow rapidly over the forecast period.
Europe Region to Dominate the Market
- The European region is expected to dominate the market for potassium metabisulfite during the forecast period. In countries like the United Kingdom and Germany owing to a large consumer base due to the increasing youth population and their dependence on beer and other alcoholic drinks, the demand for potassium metabisulfite has been increasing in the region.
- Europe is the major producer and consumer of wine with more than 55% of the consumption share of wine, owing to which there is a surge in the demand for potassium metabisulfite in the region.
- The European alcoholic beverage market is expected to register a CAGR of over 3% during the forecast period which would provide lucrative opportunities for the potassium metabisulfite market to grow in the near future.
- According to Statista market forecast, the food and beverage industry in Germany has generated a revenue of USD 2.53 billion in 2020 witnessing a rise by 31% compared to 2019. Also, the revenue is expected to reach USD 3.59 billion in 2025.
- Also, the United Kingdom has gererated a revenue of USD 8.5 billion in 2020 and porojected to reach USD 10.9 billion in 2025.
- Some of the major companies operating in European region are - LAFFORT, Alkaloid AD Skopje., and BASF SE.
- The aforementioned factors, coupled with government support, are contributing to the increasing demand for potassium metabisulfite during the forecast period.
The potassium metabisulfite market is fragmented with top players accounting for a marginal share of the market. Major companies in the market include Aditya Birla Chemicals, BASF SE, Murphy and Son, LAFFORT, and Alkaloid AD Skopje, among others.
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